Investing.com - The dollar edged lower against a basket of the other major currencies on Tuesday as investors looked ahead to the upcoming Federal Reserve policy meeting, at which it was widely expected to deliver its third rate hike this year.
Euro zone money markets are now fully pricing in a 10 basis-point rate rise from the European Central Bank in September next year, as investors bet the central bank is likely to deliver its first rate rise of the cycle sooner rather than later. The difference between the overnight bank-to-bank interest rate for the euro zone - known as Eonia - and forward Eonia rates dated for the ECB's September 2019 meeting, was almost 10 basis points on Tuesday, up from around 8.5 bps last week.
The EUR could remain under pressure, courtesy of an uptick in the treasury yields.
With stats on the lighter side and trade war chatter hitting the markets, Trump’s speech to the General Assembly at the UN could ruffle a few feathers.
The USD/JPY is likely to remain underpinned as long as the focus for investors remains on the widening of the spread between U.S. Government bond yields and Japanese Government bond yields. Also helping to drive the Forex pair higher is the divergence between the monetary policy of the hawkish U.S. Federal Reserve and the dovish Bank of Japan.
Gold markets rallied during the session on Monday, as the ECB head Mario Draghi spoke. However, the market turned around rather rapidly as the EUR/USD pair approached the 1.18 level. This was a sign that the US dollar could pick up a bit of strength, working against Gold.
The US dollar has struggled a bit against the Japanese yen to kick off the week, but that can hardly be a surprise as we are approaching a major downtrend line.
After the ridiculous move last week, it is a bit surprising to see that there is some continuation in the rally from the British pound and early hours, but at this point it certainly looks as if that’s going to be the case.
The British pound recovered during the day on Monday against the Japanese yen, breaking above the ¥148 level. However, I think there is a big fight ahead of ourselves to reach the highs again. I suspect that until there is some type of clarity and the situation involving the Brexit, it’s difficult to hang onto gains for the longer-term.
The Euro rallied initially during the day on Monday but is starting to roll over to form a “lower high” on the longer-term charts. Because of this, I think that the 1.18 level is showing just how important it’s going to be.
The Australian dollar gapped lower to kick off the week, which should hardly be a surprise considering how negative headlines coming out of the Sino-American relations are starting to become. After all, Australia’s very sensitive to the Chinese economy and therefore will be paying the price.
The AUD/USD and the NZD/USD are also expected to be pressured by lower demand for risky assets and rising crude oil prices, which could lead to an economic slowdown.
Based on Monday’s price action and the close at $1204.40, the direction of the December Comex Gold market today is likely to be determined by trader reaction to the 50% level at $1205.90.
Based on yesterday’s price action and the close at .7251, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the Fibonacci level at .7257.
The resumption in concerns around trade uncertainties, the upcoming Federal Reserve policy meeting and general political risk element that continues to guide investor sentiment have led emerging market currencies within the Asian region to start the week on the back foot
Investing.com – U.S. gold futures settled a touch higher on Monday after hitting one-week highs above $1,200 an ounce, as bullion traders took in stride trade war tensions and a widely-anticipated Federal Reserve rate hike, which would typically be bearish for the yellow metal.
Coming off the best week for digital currencies since late July, bitcoin, the world’s No. 1 digital currency, was trading marginally lower on Monday. In midafternoon action, a single bitcoin (BTCUSD) was changing hands at $6,627.68, down 0.7% since Sunday at 5 p.m. Eastern Time on the Kraken exchange, and off a late-Friday high of $6,808. Crypto bulls are riding high after to total market value of cryptocurrencies has risen by more than $20 billion over the past seven sessions, perhaps, signaling a halt in a monthslong bitcoin bear market, which has the price of the digital currency down more than 50% in 2018.
Investing.com - The dollar retreated against its rivals Monday, pressured by a stronger pound amid lingering hopes of a UK-EU Brexit deal, while a firmer euro on positive remarks from European Central Bank Mario Draghi also hurt the greenback.
Investors are assessing whether the Federal Reserve’s highly anticipated interest rate hike this week could reignite a dollar rally. Here’s why some analysts are skeptical.
The dollar’s weakness moderates late Monday as investors turn their focus to the conclusion Wednesday of a two-day Federal Reserve meeting that’s seen as virtually certain to deliver a rate increase.
Gold prices continued to trade sideways consolidating in a tight range. Additionally, the trade spat between the US and China is generating unwanted volatility. Companies are now pulling back on future investment which is putting downward pressure on riskier assets. Trader’s are looking toward Wednesday’s Federal Reserve meeting which is expected to see an increase in interest rates.
Investing.com - The U.S. dollar continued to fall against other currencies on Monday, while the pound gained ground as investors awaited an interest rate decision from the Federal Reserve.The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.21% to 93.59 as of 10:21 AM ET (14:21 GMT).The Fed meets on Tuesday and Wednesday, with traders expecting a rate hike for the third time this year. The market has already priced in a 100% chance of a 25-basis-point increase.Chances of an increase in December were at 86.1%. ...
Investing.com - Stocks started lower Monday, with investors hesitant as a new batch of tariffs between the U.S. and China went into effect. But a wave of mergers produced a lot of activity in individual issues.
Other metals were mixed on the Comex, with silver futures falling 0.34% to $14.310 a troy ounce. Among other precious metals, platinum futures rose 0.30% to $835.40, while palladium futures increased 0.39% to $1,049.00 an ounce. Copper futures gained 0.16% to $2.862 a pound.
Cryptocurrencies fell on Monday, while Bitcoin eased from a two-and-a-half-week high as an academic study found that Tether does not impact its price. Bitcoin decreased 1.56% to $6,630.30 on the Bitfinex exchange, as of 8:52 AM ET (12:52 GMT). Cryptocurrencies overall were lower, with the coin market cap of total market capitalization at $219 billion at the time of writing, compared to $228 billion on Sunday.